Form T1135: Foreign Income Verification Statement Canada

T1135, the Foreign Income Verification Statement Canada, is a CRA reporting form that certain Canadian tax residents must file when their specified foreign property exceeds CAD$100,000. The form reports foreign assets, not tax owed, but penalties can apply if you fail to file it.

Last updated June 08, 2026

Written by: Deborshi Choudhury

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Who needs to file Form T1135?

Canadian tax residents generally need to file Form T1135 if the total cost amount of their specified foreign property exceeded CAD$100,000 at any time during the year. If you’re unsure whether Form T1135 applies to you, start with these three basic tests.

Key Form T1135 filing requirements

Requirement	Rule
Canadian tax resident	Yes
Foreign property exceeds the CAD$100,000 cost amount	Yes
Non-resident of Canada	Usually no

What is specified foreign property?

Specified foreign property generally includes foreign financial accounts, investments, and certain real estate outside Canada.

For Americans in Canada, foreign property often includes assets held in the US, such as brokerage accounts, stocks, bank accounts, or rental property. Although these assets may feel domestic from a US perspective, they are generally treated as foreign property for Canadian tax purposes.

The most common examples are shown below.

Common assets that may require Form T1135 reporting

Asset	Usually reportable?
US brokerage account	Yes
US stocks held in a non-registered account	Yes
Foreign bank accounts	Yes
Foreign rental property	Usually
Foreign mutual funds	Usually

What assets are excluded from Form T1135 reporting?

Some foreign assets are excluded from Form T1135 even if they are located outside Canada. Not every foreign asset needs to be reported.

Common examples include:

Certain Canadian registered accounts, such as RRSPs, RRIFs, and TFSAs
Personal-use vacation homes
Property used in an active business

Real estate often creates the most confusion. A foreign rental property is usually treated as an investment and may need to be reported. A vacation home used primarily for personal purposes is generally treated differently.

How is the CAD$100,000 threshold calculated?

The CAD$100,000 threshold is generally based on the total cost amount of all your specified foreign property combined, not its market value. If the total cost amount exceeds CAD$100,000 at any point during the year, Form T1135 may be required.

The table below highlights the difference between cost amount and market value for Form T1135 purposes.

Cost amount vs market value

Term	Meaning	Used for the CAD$100,000 threshold?
Cost amount	Generally the amount paid to acquire the asset, subject to CRA rules and adjustments	Yes
Market value	The asset’s current value based on market conditions	No

For example:

Asset	Cost amount
US brokerage account	CAD$65,000
US bank account	CAD$40,000
Total	CAD$105,000

Because the combined cost amount exceeds CAD$100,000, you would generally need to file Form T1135.

You cannot look only at your December 31 balances. If the total cost amount of your specified foreign property exceeded CAD$100,000 at any point during the year, a T1135 filing obligation may arise.

How do you file Form T1135?

You file Form T1135 by identifying your reportable foreign assets, completing the form, and submitting it to the CRA. Form T1135 is generally filed with, or by the same deadline as, your Canadian income tax return.

Step 1: Confirm you meet the filing threshold
Calculate the total cost of your specified foreign property.

Step 2: Gather information about your assets

You’ll generally need:

Asset type
Country where the asset is located
Maximum cost amount during the year
Income generated by the asset
Capital gains or losses, if applicable

Step 3: Determine which reporting method applies

The CRA generally allows simplified reporting when specified foreign property was more than CAD$100,000 but less than CAD$250,000 throughout the year. If the total cost amount reached CAD$250,000 or more, more detailed reporting is usually required.

Step 4: Complete Form T1135

Report the required information for each category of foreign property.

Step 5: Submit the form

For most individuals, Form T1135 is due by April 30, 2026, for the 2025 tax year. Self-employed taxpayers may have until June 15, 2026, to file, although any Canadian tax owing is generally still due by April 30, 2026.

Step 6: Keep supporting records

Retain account statements, purchase records, and other supporting documents in case the CRA requests them.

What are the penalties for not filing Form T1135?

Failing to file Form T1135 can result in penalties even when no additional Canadian tax is owed.

The standard late-filing penalty is generally CAD$25 per day, with a minimum penalty of CAD$100 and a maximum penalty of CAD$2,500.

Penalties can increase significantly if the CRA determines that a failure to file Form T1135 involved gross negligence. In those cases, the penalty may be CAD$500 per month for up to 24 months, to a maximum of CAD$12,000, less any penalties already assessed. The CRA may also impose higher penalties in certain situations, including when a taxpayer fails to file after receiving a formal demand to do so.

How does Form T1135 differ from FBAR and Form 8938?

Form T1135, FBAR, and Form 8938 all involve foreign asset reporting, but they are filed with different governments and serve different purposes.

Form T1135 vs FBAR vs Form 8938

Form	Country	Purpose
T1135	Canada	Foreign asset reporting
FBAR	United States	Foreign account reporting
Form 8938	United States	Foreign financial asset reporting

Example: Why do some Americans in Canada file three foreign asset forms?

Consider a US citizen who lives and works in Canada while maintaining investment accounts in both countries.

That person may need to file Form T1135 in Canada, an FBAR in the United States, and Form 8938 with their US tax return. Although all three forms involve foreign assets, each serves a different reporting purpose.

What mistakes do Americans in Canada commonly make?

Most Form T1135 mistakes happen because taxpayers misunderstand the threshold rules or overlook reportable assets.

1. Using market value instead of the cost amount

The reporting threshold is generally based on cost amount. Using market value can lead to incorrect conclusions.

2. Forgetting US brokerage accounts

Many Americans do not think of their US investment accounts as foreign assets after moving to Canada. The CRA often does.

3. Assuming no tax means no filing

Form T1135 is a reporting form. A filing obligation can exist even when no additional Canadian tax is due.

4. Missing jointly owned assets

Joint ownership does not automatically remove an asset from Form T1135 reporting. The taxpayer’s ownership interest and cost amount should be reviewed to determine whether reporting is required.

5. Filing FBAR but forgetting Form T1135

Some taxpayers focus on US reporting requirements and overlook Canada’s separate disclosure rules.

Frequently Asked Questions

Does filing Form T1135 mean I owe Canadian tax?

No. Form T1135 is primarily an information-reporting form and does not automatically increase your Canadian tax liability.

What exchange rate should I use for Form T1135?

The exchange rate depends on the amount being reported. You may need to convert the amounts for foreign property, foreign income, capital gains, and other amounts into Canadian dollars. The CRA generally expects taxpayers to use a reasonable, supportable exchange rate and apply it consistently throughout their reporting.

Can I amend a previously filed Form T1135?

Yes. If you discover an error after filing, you can generally submit a corrected Form T1135.

What happens if I missed Form T1135 in previous years?

Penalties may apply. Depending on the circumstances, you may want to seek professional advice regarding available correction options.

Does jointly owned property count toward the CAD$100,000 threshold?

Often, yes. Jointly owned foreign property can still count toward the CAD$100,000 reporting threshold. Whether Form T1135 is required generally depends on the taxpayer’s ownership interest and the cost amount of that interest in the property.

Is T1135: Foreign Income Verification Statement Canada the same as FBAR?

No. Form T1135 is filed with the CRA, while FBAR is a separate US foreign account reporting requirement filed with the US government.

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Deborshi Choudhury, an IRS Enrolled Agent with 18 years of expat tax experience, specializes in US tax preparation, tax planning, and tax advice for US citizens and Green Card holders living and working in the UAE and Canada.